SARASOTA, Fla., Feb. 21 /PRNewswire-FirstCall/ -- Roper Industries,
Inc. (NYSE: ROP) today announced that it has acquired The CBORD Group,
Inc., the leading supplier of card systems and integrated security
solutions to higher education, healthcare and other markets, in a
transaction valued at $367 million, including $23 million in tax benefits
that can be utilized over time. Roper expects the addition of CBORD to be
immediately cash accretive. The acquisition is expected to add $0.02-$0.03
to 2008 diluted earnings per share and to increase 2009 diluted earnings
per share by up to $0.10.
CBORD provides integrated transaction solutions to 750 colleges and
universities, representing 4.5 million students; 1,700 major healthcare
licensees; and large corporate campuses, leading supermarkets, theme parks
and dining chains. In total, CBORD systems are used by more than 6,000
organizations in the U.S., Canada, Europe, South Africa, New Zealand and
Australia. The business will continue as CBORD and will operate within
Roper's RF Technology segment, and market its products and services under
its current brand names.
"CBORD is an ideal acquisition for Roper that meets all of our key
criteria," said Brian Jellison, Roper's Chairman, President and CEO. "The
company enjoys leadership in its core markets with brand name recognition,
long-term relationships with high customer retention, the broadest suite of
integrated applications, and a reputation for quality service. Its
financial profile is excellent with strong recurring revenue and EBITDA
margins and low working capital requirements. In addition, CBORD has a
prepaid annual subscription model that accelerates cash flow and reduces
risk in many of its markets. There are a wide range of synergies between
CBORD and our existing businesses. Most importantly, CBORD has
extraordinary growth opportunities across its markets and in others it will
be able to pursue as a part of Roper. The business will play a critical
role as we develop solutions to extend our cash generation activities
beyond water utilities and transportation to higher education, healthcare
and other new end markets where CBORD has leading positions."
CBORD stands out as a complete solutions provider in the higher
education market. The company provides a wide variety of student and
employee transactions under a single system, "one card" approach. Its
card-based services also include security, onsite and off-campus commerce
and student discounts. In campus food service, the company's services
include food management software and online ordering. CBORD's healthcare
business provides patient and employee food service enabling services that
offer more choice and nutritious alternatives, streamline delivery and
reduce costs, increase efficiency in order to allow more time and resources
to be directed to patient care, and ultimately improve patient
satisfaction.
CBORD's management team, under the leadership of Tim Tighe, will
continue to lead the business as part of Roper.
Mr. Jellison added, "We are very impressed by the accomplishments and
talents of the CBORD management team, and look forward to working with Tim
and his colleagues to enhance the value of those businesses through the
application of their proven technologies to new end markets and expansion
of their global reach."
Mr. Tighe said, "Our management team is delighted that CBORD has found
a great new home at Roper. Our customers will find that we will continue to
provide the same excellent service and support, with full continuity of
personnel, and that with greater scale, our customers will be able to
expect even more from us. As part of Roper we will have the financial and
strategic resources necessary to pursue a variety of new initiatives, and
further improve our product offerings through collaboration with the other
leading- edge businesses in the Roper family. Our future is very bright as
part of Roper, which shares our vision and commitment to value creation."
Mr. Jellison concluded, "We are pleased to enter 2008 with an
outstanding cash-enhancing acquisition, and we are confident that our
robust acquisition pipeline and strong balance sheet will yield other
opportunities to build value for Roper shareholders during the year."
About Roper Industries
Roper Industries is a market-driven, diversified growth company with
trailing twelve month revenues of $2.1 billion, and is a component of the
Fortune 1000, S&P MidCap 400 and the Russell 1000 Indexes. Roper provides
engineered products and solutions for global niche markets, including
water, energy, radio frequency and research/medical applications.
Additional information about Roper Industries is available on the Company's
website at http://www.roperind.com.
About The CBORD Group
The CBORD Group serves healthcare facilities, colleges and
universities, corporations, chain restaurants, supermarkets, and a host of
other market segments. CBORD products are used in food service, catering,
nutrition services, campus ID card privilege control, access control and
electronic security, housing services, cashless dining, online ordering,
and other institution-wide activities. The CBORD Group was founded in 1975
and is headquartered in Ithaca, New York. To learn more about CBORD, visit
the Company's website at http://www.cbord.com.
The information provided in this press release contains forward looking
statements within the meaning of the federal securities laws. These forward
looking statements include, among others, statements regarding operating
results, the success of our internal operating plans, and the prospects for
newly acquired businesses to be integrated and contribute to future growth
and profit expectations. Forward looking statements may be indicated by
words or phrases such as "anticipate," "estimate," "plans," "expects,"
"projects," "should," "will," "believes" or "intends" and similar words and
phrases. These statements reflect management's current beliefs and are not
guarantees of future performance. They involve risks and uncertainties that
could cause actual results to differ materially from those contained in any
forward looking statement. Such risks and uncertainties include our ability
to integrate our acquisitions and realize expected synergies. We also face
other general risks, including our ability to realize cost savings from our
operating initiatives, unfavorable changes in foreign exchange rates,
difficulties associated with exports, risks associated with our
international operations, difficulties in making and integrating
acquisitions, risks associated with newly acquired businesses, increased
product liability and insurance costs, increased warranty exposure, future
competition, changes in the supply of, or price for, parts and components,
environmental compliance costs and liabilities, risks and cost associated
with asbestos related litigation and potential write-offs of our
substantial intangible assets, and risks associated with obtaining
governmental approvals and maintaining regulatory compliance for new and
existing products. Important risks may be discussed in current and
subsequent filings with the SEC. You should not place undue reliance on any
forward-looking statements. These statements speak only as of the date they
are made, and we undertake no obligation to update publicly any of them in
light of new information or future events.
SOURCE Roper Industries, Inc.
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Related links:
http://www.roperind.com
http://www.cbord.com
CONTACT:
Investor Relations, +1-941-556-2601,
investor-relations@roperind.com
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